DAVAO Light and Power Company (Davao Light) Head Enriczar T. Tia expressed his confidence that the House Bill (HB) 11072, expanding the franchise area of their utility company to areas previously served by Northern Davao Electric Cooperative, Inc. (Nordeco), will be passed into law by 2025.
In an ambush interview during the Aboitiz Group Davao Media Year-End Appreciation Celebration on Tuesday, December 17, 2024, Tia told VoxPop Davao that the bill is currently in the safe hands of the country’s lawmakers given that it passed the third and final reading earlier this week.
“The status right now is (it’s) in the good hands of the legislators. We are hoping that this will push through sana (hopefully) next year and will be signed into law,” the Davao Light official said, adding that they will still have to coordinate with the existing electric utility provider to serve their covered jurisdiction with quality, reliable, and inexpensive residential electrical power rates for economic progress.
Tia explained that contrary to the speculations of the consumers, there is no truth that its service area expansion will lead to an automatic increase in electricity rates.
“The rates will not increase. In fact, it will decrease. It will not affect the existing rates with the consumers of Davao Light but it will significantly lower down the rates for Nordeco customers,” Tia clarified, further citing the data provided by the Energy Regulatory Commission (ERC) during several hearings conducted by the Senate.
Currently, Davao Light, the Philippines' third-biggest private utility firm, offers cheaper electricity rates and customer-centered services compared to nearby electric cooperatives in the region and in Mindanao. Tia claims that this demonstrates the company's commitment to serving its clients with the most affordable power contracts.
On December 10, the House of Representatives during the 19th Congress approved HB 11072, garnering 181 votes in favor, nine votes against, and one abstention.
According to the bill, the company's franchise area would now cover the municipalities of Asuncion, Kapalong, New Corella, San Isidro, Talaingod, Tagum City, and the Island Garden City of Samal in Davao del Norte, and Maco in Davao de Oro.
Currently, Davao Light is looking forward to having a one-on-one business meeting with Nordeco on how to improve their service in order to avoid problems and disruptions in the daily economic activities of the businesses and its consumers.
“We do [because] at the end of the day, we do not want to disrupt the service so if this is going to be a law, we need to talk and sit down how we continue our service with customers” Tia stated. DEF
